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Auto Insurance Claims/AAMCO totaled my grooming van and won't pay

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Expert: webfoot - 4/18/2009


Question
Here's my dilemma... I purchased a mobile grooming van for $8,300 and brought it to a local repair shop, where I sunk and additional $4,000 worth of repairs into the vehicle.  At that point, the mechanic informed me I need a new transmission, and he had my van towed to AAMCO from his shop.  AAMCO installed the transmission.  On the test drive, they totaled my van!  Completely totaled.  Now, AAMCO's insurance company is telling me they will only pay $3,500 for the vehicle, which they claim is book value (and does not include the repairs, or grooming van conversion).  My total losses, including loss of business, are 5x this amount.  What do I do?  Who do I sue - is it the original auto body shop, or AAMCO?  I am at a loss and can't afford a lawyer, as I am already thousands in the hole and can't pay the loans I took on the business.  Please offer advice.

Answer
Regardless of the "book" value, the van was obviously equipped with more than standard factory equipment and alteration.  There are no books to valuate such a vehicle.  
Even major insurance carriers such as the one that I work for would never attempt to put a value on such a specialized vehicle without first bringing in an outside appraiser who is truly qualified in such matters.  You may be owed a portion of the recent repairs as well.

Now, keep in mind that if you made the mistake of simply paying too much for a vehicle that needed a bunch of work, that falls on you.

You will need to find a qualified, independent appraiser to determine the value of the vehicle and may need to sue Aamco for that amount.  Most small claims court limits are currently at $10,000 and you will not need an attorney.

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Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.

Experience

20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background

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